Question

For 1-3, consider an investment of $6000

that earns 4.5% interest. Use a graphing
calculator if needed.
1. Write an equation to describe the value
V(t) of the investment at time t if the
interest is compounded daily.

Answer 1

See below

Explanation:

Period = 1 day

Periodic interest = .045 / 365 (since there are 365 days in a year)

V(t) = 6000 * ( 1 + .045/365)^t where t is in days

V(t) = 6000 * (1+.045/365)^(t * 365) where t is in years